The company has offered financing its 125 cc XCD motorcycle at an interest rate of 5.25 per cent for a three-year tenure. This, at a time when the average loan rates for two-wheeler financing is hovering around the 13 per cent mark.
"This is a limited period offer and we are financing through Bajaj Auto Finance," Amit Nandi, general manager-marketing, Bajaj Auto, said.
The 5.25 per cent interest rate is being offered only for the XCD motorcycle, he said. Besides, the company is also offering two-wheeler financing at a flat rate of 9 per cent on its other models.
High lending rates and non-availability of finance has forced automakers, especially two-wheeler companies, to innovate marketing ploys to attract customers.
Motorcycle sales in the country has fallen 12 per cent in the last financial year ending March.
However, sales saw a recovery in the new financial year when companies sold 8 per cent more motorcycles during April compared to the same month last year.
Meanwhile, Bajaj's Auto's main competitor Hero Honda Motors is offering free Indian Premier League passes to its customers.
Hero Honda, the country's largest motorcycle maker, incidentally gets it vehicles financed from the country's biggest auto loan lender ICICI Bank at 13 per cent.
Bajaj Auto, which launched the 125 cc XCD in September last year, is aiming to wean customers away from the declining 100 cc segment. Bajaj Auto's sales in the 100 cc segment fell almost 42 Per cent on year during 2007-08.
During the same period, its sales in the 125 cc category rose 13.2 per cent on year.
It launched the XCD at Rs 41,000, challenging bigger rival Hero Honda's dominance in the lower segment of the motorcycle market.
Hero Honda has a market share of almost 41.5 per cent in the entry-level motorcycle segment.
Even Hero Honda's sales in the segment fell 2.5 per cent on year during the same period.
The XCD has boosted Bajaj Auto's sales in the 125 cc motorcycle segment by 13.2 per cent on year during 2007-08.
Shares of Bajaj Holdings and Investment, which holds 30 per cent stake in Bajaj Auto on Friday closed at Rs 673.80, up 0.28%.
